Intrepid Potash says auditor flags "going concern" doubt

Mon Feb 29, 2016 9:43am EST
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Feb 29 (Reuters) - Intrepid Potash Inc said its auditor had expressed doubts about the miner's ability to stay in business, sending its share price tumbling by more than a third.

The company, which reported its third straight quarterly loss, also said low potash prices could cause a breach in its loan covenants.

"As a result, our auditors added going concern language to their audit opinion," Chief Executive Bob Jornayvaz said in a statement on Monday.

Intrepid Potash, which had 928 employees as of Dec. 31, 2014, also said it cut 5 percent of its workforce in early 2016.

The company said it was evaluating the viability of one of its mines near Carlsbad, New Mexico.

"We have also been working with our lending group on an amendment that will provide us with the time and continued flexibility needed as we evaluate and execute on our options," Jornayvaz said.

The company reported net loss of $518.3 million, or $6.85 per share, in the fourth quarter ended Dec. 31, compared with earnings of $5.8 million, or 8 cents per share, a year earlier.

The company's shares were down 33 percent at $1.49 in early trading. The stock has lost more than 90 percent of its value in the past year. (Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty)